A call option on a futures contract:
A)gives the buyer the right to assume a sold position in the futures.
B)gives the seller the right to assume a sold position in the futures.
C)gives the buyer the right to assume a buy position in the futures.
D)gives the seller the right to assume a buy position in the futures.

Question

Quizplus · Accepted Answer

A call option gives the buyer the right to assume a buy position in the futures contract. This means that the buyer has the right to buy the underlying asset at a fixed price on or before the expiration date of the option.

A Call Option on a Futures Contract